US fires first shot at EU biotech policy 

By Frances Williams in Geneva Financial Times; Aug 19, 2003

The US,  Canada and Argentina yesterday demanded  a  World  Trade
Organisation  panel  to  rule  on their challenge to the European
Union's restrictions on imports of  genetically  modified  crops,
sparking a fierce reaction from Brussels.  

Washington  and  its  allies  contend that the EU's 1998 de facto
moratorium on approvals of biotech foods is illegal because it is
not based on scientific  evidence  of  risk  to  health  and  the
environment 

They are also contesting outright bans by six EU member states on
some already approved genetically modified organisms (GMOs).  

But Pascal Lamy,  the EU trade commissioner,  condemned the panel
move  as  "unnecessary  litigation".   Brussels  says   new   GMO
approvals  are  in  the  pipeline following the introduction last
year of a new science-based regulatory regime.  

Mr Lamy said:  "The EU's regulatory system  for  GMOs  is  clear,
transparent, reasonable and non-discriminatory.  

In  addition,  the  EU  last  month  adopted strict labelling and
traceability  rules  for  GMOs  that  will  require  them  to  be
segregated  from non-biotech crops,  a requirement US farmers say
will be hugely costly to implement.  Brussels says the new  rules
are needed to help restore consumer confidence in GM foods.  

Though the EU blocked yesterday's initial request for a panel, as
it has the right to do under WTO dispute procedures, a panel must
be  established on the second time of asking,  expected on August
29.  Panels normally take  at  least  six  months  to  deliver  a
verdict,  and an appeal by the loser can drag out the process for
a year or more.  

The US told the WTO's dispute settlement body that approvals  for
more  than  30  biotech  products  had  been  affected  by the EU
moratorium.   Linnet   Deily,   the   US   ambassador,   repeated
Washington's  claim  that  the  EU's  stance  was  "hindering the
worldwide   development   and   application    of    agricultural
biotechnology",  which  could relieve hunger,  raise agricultural
productivity and improve the environment.  

Brussels  has  angrily  repudiated  US   accusations   that   its
opposition  to  GMOs  worsened the recent food crisis in southern
Africa,  when several countries rejected US food  aid  containing
GMOs.  

Several  studies by scientific experts have concluded that the GM
foods currently on the market are safe to eat, but that new foods
should be rigorously tested.  

The EU claims its new rules are in line with recommendations  for
risk-testing  GMOs adopted by the Codex Alimentarius,  the United
Nations food safety body,  which require stricter procedures than
those in the US.  

19/8/03                  *                  FT                  *
http://search.ft.com/search/article.html?id=030819000139